Question
23_Top Corporation acquired 100% of Sun Corporations common stock on December 31,2019. Balance sheet data for the two companies immediately following the acquisition TOP SUN
23_Top Corporation acquired 100% of Sun Corporations common stock on December 31,2019. Balance sheet data for the two companies immediately following the acquisition
TOP SUN
Cash $ 49,000 $ 30,000
Accounts Receivable 110,000 45,000
Inventory 130,000 70,000
Land 80,000 25,000
Buildings & Equipment 277,000 235,000
Investment in Sun Corporation 198,000
Total Assets $844,000 $405,000
Accounts Payable $ 61,500 $ 28,000
Taxes Payable 95,000 37,000
Bonds Payable 280,000 200,000
Common Stock 150,000 50,000
Retained Earnings 257,500 90,000
Total $844,000 $405,000
At the date of the business combination, the book values of Suns net assets and liabilities approximated fair value except for land, which had a fair value of $45,000 . what is the goodwill total that should appear in the consolidated balance sheet prepared immediately after the business combination?
Select one: a. 58,000 b. 43,000 c. 23,000 d. 38,000 24_X Corporation acquired 80 percent of Y Corporations outstanding capital stock for $430,000 cash. Immediately before the purchase, the balance sheets of both
corporations reported the following:
XCO Y CO
Assets $2,000,000 $750,000
Liabilities $ 750,000 $400,000
Common Stock 1,000,000 310,000
Retained Earnings 250,000 40,000
Liabilities & Stockholders Equity $2,000,000 $750,000
At the date of purchase, the fair value of Y assets was $50,000 less than the Book value amounts. In the consolidated balance sheet prepared immediately after the purchase,the goodwill should amount to
Select one: a. 137,500 b. 237,500 c. 130,000 d. 30,000 25_on 1/1/2019 X CO acquired 80% of Y common stock for $150,000 in the same day the y net assets was $ 140,000 ,in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 y reported income $50,000 , declared dividend $30,000 , X using cost methods what is investment balance on 31/12/2019
Select one: a. 200,000 b. 166,000 c. 177,000 d. 150,000
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